****Internet Lending in all 50 states****

but what happen if they have my new bank account and I have direct deposit. Can they still take money out even I tell them not to?

yes i'm afraid they can and will.you will have to either close it,or change account numbers.your bank manager is the only one to see for this,but again yes illegals can and will debit from any account they have the info on.

If a PDL company has to be licensed by the State of New Mexico to do bussines with New Mexico residents are they also require to abide by New Mexico laws regarding recovery options and interest rate ceilings? In New Mexico you can have only PDL at a time. But that didn't stop them on the internet??

As far as I know, the PDL company will have to abide by the New Mexico laws regarding recovery options and interest rate ceilings.

Are PDL internet companies licensed to loan in NH? Looking at the law I can't tell if they can be but none are listed on the banking list.

Payday lending is legal in New Hampshire. But, not all internet payday loan companies may be licensed to operate in your state. You can contact the New Hampshire State Banking Department in order to find out whether or not your internet payday lenders are legal.

I'd also like to share some thing about the payday lenders in New Hampshire. In NH, payday lenders are allowed to charge whatever interest a borrower can pay. However in NH, the various other provisions of the small loan act have to be followed by these lenders.

Quote: the following states don't require a license in their state, nor do you have to follow their laws...

Just thought I'd respond to this lest anyone risk getting in some big trouble.

Generally speaking, you have to follow the laws of any jurisdiction in which you conduct business. Of course there's always the chance that a jurisdiction might explicitly say "you don't have to follow our laws if you are engaged in the following activity..." but it is unlikely.

To that end I called all four of the states you listed. They all responded with some form of "what are you, stupid?" when asked if I didn't need a license from their state to operate online with a license from another state. Furthermore, having reviewed their actual laws regarding licensure I can find no carve out for those already licensed in another state, nor separate rules for "internet based" operations.

On the subject of arkansas, there is a 2001 AR supreme court case that straight up says that the law that allows payday lending/deferred presentment violates separation of powers and the AR constitution.

To paraphrase: Just because you call a loan something other than a loan, doesn't mean it isn't. Likewise, just because you call it a fee, doesn't mean it isn't an assessed interest rate. As such, this is in direct violation of the part of our constitution that says you can't charge over 17% interest...

I know there are still people lending there but that doesn't mean they're doing it legitimately.

Hi everyone,

I'm new to the site, but have read several threads. I don't know if anyone is still searching for whether internet PDLs are legal in the state of Kentucky or not, but I found this information on the KY Department of Financial Institutions website:

What is a payday loan?
A payday loan, also called a deferred deposit, is issued when a financial institution (a payday lender or check casher) agrees to provide cash in the amount of the customer’s next expected payroll check for a fee. These short-term loans are required by state law to be paid in full before another one can be issued, and customers may not have more than two payday loans totaling $500 at a time. Internet payday lenders are not regulated in the state of Kentucky and are therefore illegal.

If you would like more info, the website is as follows: http://www.kfi.ky.gov/faq.htm

SB 3103 by *Marrero B (*HB 3112 by *Richardson, Jones S, Stewart, Fitzhugh, Brown, Pruitt, Towns, DeBerry J, Jones U, Miller L, Favors, Odom, Cobb T, Ferguson, Turner M, Moore, Sontany) Banks and Financial Institutions - As introduced, prohibits a payday lender from providing loans to borrowers via the Internet, regardless of whether the lender is located inside or outside Tennessee. - Amends TCA Title 45

does this change the standing of Tennessee?

I asked the same question to Tennessee Consumer Affairs as the question asked to Kentucky above, I borrowed said question from above, and this is the response I got. I think I understand it but if domineering with more legaleeze than me could put it in less wording than they did it would be greatly appreciated.
On Mon Oct 24th, 2011 11:29 AM CDT TDFI ConsumerResources wrote:
>Mr M,
>
>Thank you for your inquiry.
>
>Deferred Presentment Service lenders, or payday loan companies, are regulated by this Department pursuant to the Tennessee Deferred Presentment Services Act ("Act") found in Tennessee Code Annotated ("TCA") Title 45, Chapter 17. (TCA 45-17-101 et seq.)
>
>The original Act was passed by the Tennessee General Assembly in 1997. The Act stipulated that Deferred Presentment Services lenders that were licensed by the Department had to have a "brick and mortar" location inside the state of Tennessee and the transactions were dictated by the presentment of a physical check instrument that would be deferred or held for deposit until the borrower had the opportunity to repay the obligation under the terms of the Deferred Presentment, or payday loan agreement.
>
>The provisions of the original Act were recently amended with the passage of Senate Bill 1557 by the Tennessee General Assembly in early May 2011. This became law and was published in Public Chapter 205 when it was signed by Governor Haslam on May 20, 2011. Here is a link to Public Chapter 205 for your reference: http://state.tn.us/sos/acts/107/pub/pc0205.pdf
>
>Therefore, any Internet payday lender and the transactions they make would be subject to the Department’s regulatory authority, if the account was opened after the May 20, 2011 amendment date. Unfortunately, we would not have any jurisdiction on an Internet payday transaction that was opened prior to the amendment date. In those situations, it is recommended to discuss the matter with private legal counsel to determine your rights and any possible remedies.
>
>If you do not have an attorney or obtain a satisfactory referral to an attorney from your present contacts, you may want to call the Tennessee State Bar Association (615-383-7421) or, your local bar association to inquire about any lawyer referral service the bar association may offer.
>
>If you cannot afford an attorney, you may want to inquire whether you are eligible for free legal services by contacting the Legal Aid Society of Middle Tennessee and the Cumberlands. Their telephone number is 800-238-1443.
>
>Please let us know if we can be of any further assistance on this topic.
>
>
>Consumer Resources Division
>Tennessee Department of Financial Institutions
>414 Union Street, Suite 1000
>Nashville, TN 37219
>800-778-4215
>615-253-2023
>615-253-7794 (Fax)
>[cid:image001.jpg@01CC9240.3BDB93F0]
>
>CONFIDENTIAL WORK PRODUCT-DO NOT DISSEMINATE
>
>THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY NAMED ABOVE. IF THE READER IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE TO DELIVER IT TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY ME IMMEDIATELY BY TELEPHONE AT THE NUMBER ABOVE AND PERMANENTLY DELETE THE MESSAGE FROM YOU SYSTEM.
>
>RECEIPT BY ANYONE OTHER THAN THE INTENDED RECIPIENT IS NOT A WAIVER OF ANY INVESTIGATIVE PRIVILEGE, ATTORNEY-CLIENT PRIVILEGE, WORK PRODUCT IMMUNITY, OR ANY OTHER PRIVILEGE OR IMMUNITY.
>
>
>
>
>
>From: chriserika94@yahoo.com [mailto:chriserika94@yahoo.com]
>Sent: Monday, October 24, 2011 10:24 AM
>To: TDFI ConsumerResources
>Subject: Internet payday lenders
>
>
>Tennessee State Information
>
>Legal Status: Legal
>
>Citation: Tenn. Code Ann. §45-17-101 et seq.
>
>Loan Terms: Maximum Loan Amount: $500 Loan Term: Max: 31 days Maximum Finance Rate and Fees: the lesser of 15% of the check or $30 Finance Charge for 14-day $100 loan: $17.65 apr for 14-day $100 loan: 459%
>
>Debt Limits: Maximum Number of Outstanding Loans at One Time: 3 (2 per licensee) Rollovers Permitted: None (cannot renew or otherwise consolidate) Cooling-off Period: Repayment Plan:
>
>Collection Limits: Collection Fees: One $30 NSF Fee; Court Costs Criminal Action: Prohibited
>
>Where to Complain, Get Information: Regulator: Tennessee Department of Financial Institutions Address: 511 Union Street, Suite 400 Nashville TN 37219 Phone: (615) 741-2236 Fax: (615) 532-1018 Regulatory Contact: Bart Daughdrill,
>
>
>To Whom It May Concern:
>
>I have a question regarding internet payday lenders. I have visited the Department of Financial Institutions site and found some information. However, I am still a little confused.
>
>I understand that storefront payday lenders are legal in the state of Tennessee and have printed out the laws applying to them. However, there is nothing regarding internet payday lenders.
>
>I did a search on the site to see if some internet payday lenders were licensed in Tennessee. No results came up for any of them. If the case is that an internet payday lender is not licensed in the state of Tennessee, what then?
>
>Internet payday lenders are claiming they do not have to comply with Tennessee state law. They claim they comply with the law in which they are located.
>
>If they are not licensed in the state of Tennessee to fund loans, are they not in violation of some sort of law?
>
>Any help in this matter would be greatly appreciated. At the very least, it might clear up my confusion.
>
>Thank you so much for your attention in this.
>
>C.M.
>
>Sent from my Verizon Wireless Phone

I am new to this board. I have been reading through so many different posts about these PDL's. I live in TN and I am not sure what the laws are here about these PDL's. I currently have 11 of them. I am drowning in the charges. I would really like some advise on what I need to do and where I could find the laws for TN on these. Any advise would be great. Thanks.